Saturday, 24 September 2016

1M Loss Due to Hype

I would like to give my opinion to a newbie who recently posts his portfolio in IPSM.


As per his posts;

He said,  this is his only money left for retirement, and he recently started last June 2016 in which index is at a high level 7800. He lost already 1 M thru following hyped stocks and took  risky moves, I believed his trading for a short term gains and trying to get a piece of pie very quick. 

To be honest this is a dangerous move especially if you are already on your retirement age. This money on his account can be wiped out easily. He should handle this money in a cautious way.

How will I manage the remaining 3.8 M pesos left on this account?

If he is receiving a monthly pension, no problem with house rent, no dependent, secured with health and life insurance, I will say nothing to worry about and start to fix the problems today. But if you don't have any of these then reflect and plan today.

First, Pull out 6 months of living expenses in the portfolio and put it on 6 months time deposit. This money can be used for emergency and roll out every six months.

Second, Reduced the portfolio into 4 stocks for easy monitoring. Understand the strategy for each stocks, if you are planning to used the money for a leisure travel or future project after 5 years, then one or two stocks for long term. 

Third, He mentioned that he does n't have any source of income and expecting of getting his daily living expenses from this portfolio. The truth, it will be hard, Take it from me I retired (https://www.youtube.com/watch?v=ZghPv3rvzkY )and did not work for at least 8 months in the past and tried to live with the trading gains, it became a seasonal income due to hard predictions of market movement. Study and gain experience on this field, it's nearly impossible to beat the market.

Fourth, Pick a good stocks for Dividends, those stocks that consistently giving a yearly dividends, you can expect a passive income aside from capital gains.

Ex: If you have 10 stocks that will give 5000 pesos cash dividends in a year, then it will be a 50 000 PHP passive income.

Fifth, Find a part time job or get a small amount of money to start a business. Make sure that the business will be related to your past experiences and you have passion for it to avoid failures. This will help you get busy during retirement or do volunteering work for small allowance.

* Don't follow any recommendations unless you did your homework.

Sincerely yours,

Jonathan I. Ruiz

Disclaimer: The blog post is for informational purposes only, it's not a recommendation to follow. There are more information needed such as age, risks appetite, financial situation and knowledge of the newbie.

Have a great Sunday.

Thursday, 22 September 2016

Tested Strategies for Saving 10k

Newbie mentor is back. I took holiday on blogging, investing, trading, and building passive income. Starting today, I will write and share again about the basics of saving, investing and building passive income while living a life of freedom.

Everyone asking about saving and investing;

How to save 20% of your monthly income?
How to invest for retirement funds?
How to enjoy life while living frugally?

I have five strategies to share and these are easy to follow;

1. Keep a record of your daily expenses. You will not be able to save, if you don't know your spending. Probably, you have a fixed income monthly and set a budget for rent, utilities, food, etc. etc. Try to look at where to cut your expenses, for example : TFC subscription ( no need for it, now everything is available online or change for a better package).

2. Look for special offers. There are  lots of 2 for 1 offers in different websites Cobone, Groupon, Zomato etc. etc. This applies in shopping and groceries, alert yourself with "SALES". I bought a toys for half a price the other day and saved few bucks.

3. Automate your savings. Set an automatic debit for your savings account, this is very important especially if you are starting out and building emergency funds. After you build the emergency funds, we can talk about investing. This is a challenge to discipline yourself on finances.

4. Collect points. If you are doing a regular purchase, then get their loyalty card. This is also applicable in collecting miles point and credit card points. You will be amazed of freebies later.


5. Set a saving goals. Everyone knows how to save and everybody talks about it. The question is " Did you hit your saving goals?

Sincerely yours,

Jonathan I. Ruiz
Newbie Mentor

P. S. Don't delay your saving goals.


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